Bahaya Riba Qardh dan Alternatif Akad Qardh Sebagai Solusi dalam Lembaga Keuangan Syariah

This paper will discuss the dangers of riba qardh and will also lead to alternative qardh contracts as a solution in Islamic financial institutions. Most people already know that usury is forbidden in Islam. And not a few people know that usury has a harmful negative impact on the perpetrator and others. And what the author will discuss now is the danger of qardh usury. That is a borrowing and borrowing contract that is added with shrouded usury. And alternative qardh contracts as a solution to avoid the impact of the dangers of qardh usury in Islamic financial institutions.

The performance of Shari’a supervisory boards within Islamic financial institutions in the Gulf cooperation council countries

Corporate Ownership and Control ◽

10.22495/cocv8i1c2p1 ◽

2010 ◽

Vol 8 (1) ◽

pp. 247-266 ◽

Cited By ~ 2

Author(s):

Samy Nathan Garas

Keyword(s):

Financial Institutions ◽

Boards Of Directors ◽

Negative Impact ◽

Positive Impact ◽

Gulf Cooperation Council ◽

Internal Variables ◽

Gcc Countries ◽

Supervisory Boards ◽

This study evaluates the role and performance of Shari’a Supervisory Boards (SSB) within Islamic Financial Institutions (IFIs) of the Gulf Cooperation Council (GCC) countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates). Although the SSB has a significant impact on an IFI’s performance, there has been little empirical research on the SSB performance. This study is unique in measuring empirically the relation between five variables and SSB performance. Data has been collected through a questionnaire from 76 Shari’a Supervisory Boards, 73 Boards of Directors, and 59 shareholders of IFIs in the GCC countries during 2009. The researchers found three variables that have a positive impact on the performance of SSBs: the number of SSB meetings, the qualifications of SSB members, and the evaluation of each member. Furthermore, the work of the Shari’a control department was found to have a negative impact on SSB performance. There was no statistically relationship between SSB performance and SSB position within the IFI organization structure. This study fills a literature gap in corporate governance by evaluating the impact of a religious board upon the performance of financial institutions. The study provides a theoretical framework for measuring SSB performance using internal variables. This study offers insights to GCC regulators, central banks, and other IFI stakeholders concerning SSB performance. In addition, it provides guidance to SSB members in improving their performance and strengthening their relations with other governance organs.

COVID -19 and Indian Financial Markets: A Review

Management Insight - The Journal of Incisive Analysers ◽

10.21844/mijia.16.2.1 ◽

2020 ◽

Vol 16 (02) ◽

pp. 1-8

Author(s):

Kamaldeep Kaur Sarna

Keyword(s):

Financial Markets ◽

Financial Institutions ◽

Financial Services ◽

Stock Markets ◽

Global Economy ◽

Banking Sector ◽

Global Financial Crisis ◽

Negative Impact ◽

Management Strategies ◽

COVID-19 is aptly stated as a Black Swan event that has stifled the global economy. As coronavirus wreaked havoc, Gross Domestic Product (GDP) contracted globally, unemployment rate soared high, and economic recovery still seems a far-fetched dream. Most importantly, the pandemic has set up turbulence in the global financial markets and resulted in heightened risk elements (market risk, credit risk, bank runs etc.) across the globe. Such uncertainty and volatility has not been witnessed since the Global Financial Crisis of 2008. The spread of COVID-19 has largely eroded investors’ confidence as the stock markets neared lifetimes lows, bad loans spiked and investment values degraded. Due to this, many turned their backs on the risk-reward trade off and carted their money towards traditionally safer investments like gold. While the banking sector remains particularly vulnerable, central banks have provided extensive loan moratoriums and interest waivers. Overall, COVID-19 resulted in a short term negative impact on the financial markets in India, though it is making a way towards V-shaped recovery. In this context, the present paper attempts to identify and evaluate the impact of the pandemic on the financial markets in India. Relying on rich literature and live illustrations, the influence of COVID-19 is studied on the stock markets, banking and financial institutions, private equities, and debt funds. The paper covers several recommendations so as to bring stability in the financial markets. The suggestions include, but are not limited to, methods to regularly monitor results, establishing a robust mechanism for risk management, strategies to reduce Non-Performing Assets, continuous assessment of stress and crisis readiness of the financial institutions etc. The paper also emphasizes on enhancing the role of technology (Artificial Intelligence and Virtual/Augmented Reality) in the financial services sector to optimize the outcomes and set the path towards recovery.

Are Islamic financial institutions more resilient against the COVID-19 pandemic in the GCC countries?

International Journal of Islamic and Middle Eastern Finance and Management ◽

10.1108/imefm-07-2020-0378 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Erhan Akkas ◽

Hazem Al Samman

Keyword(s):

Saudi Arabia ◽

Phase Analysis ◽

Financial Institutions ◽

Random Effect Model ◽

Second Phase ◽

Content Type ◽

Gcc Countries ◽

Effect Model ◽

Purpose This paper aims to investigate and provide an objective appraisal of the impact of the COVID-19 outbreak on Islamic and conventional financial institutions and Islamic windows in the Gulf Cooperation Council (GCC) countries. Design/methodology/approach The panel data techniques are conducted country-wise in each financial institution type: random-effect model, fixed-effect model and Hausman test. Findings The results of the first phase analysis that extends from 1 January 2020 to 30 October 2020 show that Islamic financial institutions are less exposed to the repercussions of the COVID-19 outbreak than the conventional and Islamic window financial institutions in Bahrain, Oman, Qatar, Saudi Arabia and UAE. Moreover, the Islamic financial institutions in Saudi Arabia and Oman have not been affected by the COVID-19 outbreak. The second phase analysis for the COVID-19 outbreak that extends from 1 November 2020 to 17 March 2021 confirms the disappearance of the negative impact of COVID-19 on Islamic financial institutions in Bahrain and Oman. Practical implications The findings present that Islamic banks are not as resilient in the COVID-19 pandemic as in the 2008 financial crisis. It can be suggested that regulatory authorities, financial institutions and other key policymakers in the GCC countries should focus on implementing regulatory reforms related to human capital, innovative products, research and development to further develop individuals, societies and institutions within the framework of Islamic ontology to be more resilient in such crises. Originality/value This paper provides a different perspective from existing literature on the pandemics and financial institutions by comparing the stock prices in Islamic and conventional financial institutions and Islamic windows in GCC countries during the COVID-19 pandemic. Therefore, this paper should be considered as a contribution to filling a gap in the literature.

The impact of internal and external market orientation on the performance of non-conventional Islamic financial institutions

Journal of Islamic Marketing ◽

10.1108/jima-03-2016-0024 ◽

2018 ◽

Vol 9 (1) ◽

pp. 132-151 ◽

Cited By ~ 6

Author(s):

Mostaque Ahmed Zebal

Keyword(s):

Market Orientation ◽

Financial Institutions ◽

Significant Relationship ◽

Structural Equation ◽

Discriminant Validity ◽

Equation Modeling ◽

External Market ◽

Content Type ◽

Purpose The purpose of this study was to explore the impact of internal and external market orientations on monetary and non-monetary performances of non-conventional Islamic financial institutions. This study further aimed at proposing a conceptual framework, testing it and examining relationships among the variables. Design/methodology/approach Data for this study were collected from 132 branches of 11 non-conventional financial institutions in Bangladesh using a closed-ended questionnaire. The study considered a structural equation modeling approach for testing the proposed model. A two-step procedure was used for this purpose. First, a measurement model was analyzed through a confirmatory factor analysis; second, the structured model was evaluated to examine relationships between the constructs. Data used in this study confirmed the adequate reliability, convergent and discriminant validity. Findings The results of the study met the expectations and provided an evidence that both monetary and non-monetary business performances are functions of internal and external market orientations’ efforts. As the results are reported, all three components of internal market orientation, e.g. internal intelligence generation, dissemination and responsiveness, were found to be statistically significant and positively related to monetary and non-monetary performances, except internal intelligence responsiveness with employees’ team spirits. The study also revealed a significant relationship between all three external market orientation components, and business performance, except external intelligence responsiveness, was not found to have a significant relationship with team spirit and customer retention. The results, however, imply that the performance of non-conventional financial institutions is an integrated effort of both internal and external orientations rather than using a single approach. Originality/value Findings of this study support the theoretical arguments that non-conventional financial institutions can be successful in attaining all types of performances by initiating and adopting internal and external market-oriented activities. The study further argues the importance of the activities under each market orientation component and suggests non-conventional financial institutions to promote such an initiative if they are to be consistent in their performances.

Moratorium in Islamic Hire Purchase Financing: A Shariah Perspective

The Journal of Muamalat and Islamic Finance Research ◽

10.33102/jmifr.v18i2.367 ◽

2021 ◽

pp. 13-29

Author(s):

Azmuddin Razali ◽

Mohammad Amir Wan Harun

Keyword(s):

Financial Institutions ◽

Financial Services ◽

Advisory Council ◽

Policy Document ◽

Banking And Finance ◽

Finance Industry ◽

Regulatory Perspective ◽

Current Outbreak ◽

This study examined the implementation of moratorium in the Islamic hire purchase financing based on Al-Ijarah Thumma Al-Bay’ (AITAB) from the Shariah perspective. The implementation of moratorium by Bank Negara Malaysia (BNM) is a new practice in the banking and finance industry in Malaysia. Implementing the moratorium causes several changes to the AITAB contract such as the extension in contract tenure and the increase in the total payment obligation due to the profit charged on the outstanding principal. This study analysed these changes from the Shariah perspective by using the al-takyif al-fiqhi methodology. The results of the analysis confirm the practice of moratorium by IFIs is in line with the Shariah requirements as long as it is agreed by the parties to the contract - which are the bank and the customer. Needless to say, both Ijarah Policy Document and Hire Purchase Act 1967 allow any forms of amendments including profit compounding when the AITAB contract is restructured, provided that such amendments are agreed between the contracting parties. Despite this permissibility, IFIs are still required to comply with the new ruling issued by SAC BNM that prohibits the practice of profit compounding during the COVID-19 crisis. Although, in principle, the ruling is based on the concept of ihsan (beneficence) which is not compulsory (wajib) but rather recommendation (istihbab) from the Shariah perspective; however, from the regulatory perspective the ruling is compulsory for IFIs to comply pursuant to section 28(1) and 28(2) of Islamic Financial Services Act 2013 (IFSA) that stated compliance with Shariah means compliance with any ruling of the Shariah Advisory Council. The moratorium is seen as a manifestation of the concept of ihsan (beneficence) towards the customers affected financially due to the COVID-19 pandemic. This commendable effort should be encouraged and continued by the Islamic financial institutions in upholding the Shariah principle of maslahah and lifting of difficulties (raf al-haraj), particularly in the current outbreak of COVID-19 and the impact of MCO.

ECONOMIC SECURITY MANAGEMENT OF FINANCIAL INSTITUTIONS AS OBJECTS OF THE STATE CRITICAL INFRASTRUCTURE

MEST Journal ◽

10.12709/mest.09.09.01.25 ◽

2021 ◽

Vol 9 (1) ◽

pp. 216-223

Author(s):

Nataliia Zachosova ◽

Zinaida Zyvko ◽

Oleksii Koval

Keyword(s):

Financial Institutions ◽

Negative Impact ◽

Financial Institution ◽

Security Management ◽

Economic Security ◽

Security System ◽

Management Decisions ◽

External Threats ◽

Wide Range ◽

The need to form a system of economic security for the effective operation of financial institutions is determined. Peculiarities of ensuring economic security of different types of financial institutions are found out, characteristic features of functional systems of economic security of financial intermediaries are revealed. It is offered to understand the management of economic security of financial institutions as a direction of management activities aimed at achieving a high level of protection of the institution's resources from the negative impact of internal and external threats by implementing a wide range of management decisions to use available opportunities and resources while providing financial services. The basics of the mechanism of economic security management of financial institutions are formed. It is assumed that the organization of the economic security system of a financial institution is carried out in several stages, such as the formation of the economic security system, ensuring the economic security system, identification, assessment, ranking of threats, and development of countermeasures; assessing the level of readiness of institutions to implement a mechanism for managing economic security; assessment of the level of economic security, development of management decisions. It is determined that the purpose of economic security management is to achieve the maximum possible level of realization of the institution's interests and meet the interests and needs of clients with optimal resource costs to minimize the impact of threats that accompany the activities of institutions.

Penerapan Etika Bisnis Islam Terhadap Kelangsungan Pembiayaan SPBU Mini Di KSPPS Bina Syariah Ummah Jawa Timur

JES (Jurnal Ekonomi Syariah) ◽

10.30736/jesa.v5i1.73 ◽

2020 ◽

Vol 5 (1) ◽

Author(s):

Agus Wahyu Irawan

Keyword(s):

Business Ethics ◽

Financial Institutions ◽

Field Studies ◽

Analysis Method ◽

Islamic Ethics ◽

Existing Problems ◽

Gas Stations ◽

Islamic Business Ethics ◽

Islamic financial institutions are developed as an alternative to the practice of people who want sharia transactions. Criticism of conventional financial institutions by the concept of sharia is not rejecting cooperatives. However, providing solutions to the transaction community that is avoided from the elements of usury, gambling (maysi>r), uncertainty (ghara>r), and inner. With the prohibition of usury, maysi>r, ghara>r, and heart in the transactions of financial institutions, they can instead apply contracts in accordance with Islamic business ethics. The purpose of this article is to find out the application of Islamic business ethics to the financing of mini gas stations at KSPPS Bina Syariah Ummah, East Java. The method used in writing this article is a descriptive qualitative. Analysis method is based on field studies. Analytical studies are intensive testing, using various sources of qualitative evidence. From the data obtained is then arranged according to the rules and analysis in accordance with the rules of writing so as to facilitate the discussion of existing problems. Methods of data collecting: interview, observation and documentation data. With this method, the author wants to examine how Islamic business ethics views about financing mini gas stations. The results of this study shows that application of business ethics in business is appropriate and good, the impact on the business is also good. So Islamic business ethics has been tested and brought benefits if applied properly. Keywords: islamic ethics implementation, SPBU funding continuity

Islamic Financial Institutions And Their Impact On The Development Of Halal SMEs In Nigeria

AZKA International Journal of Zakat & Social Finance ◽

10.51377/azjaf.vol1no01.6 ◽

2020 ◽

pp. 01-24

Author(s):

Tijanni Muhammad ◽

Besar Bin Ngah

Keyword(s):

Financial Institutions ◽

Structural Equation ◽

Positive Impact ◽

Financial Institution ◽

Positive Direction ◽

Small Medium Enterprises ◽

Effective Models ◽

Medium Enterprises ◽

Islamic Financial Institution is considered Halal and Shariah-compliant institution that effectively developed and impacted the role of developing Small Medium Enterprises by sharing similar value, principle, and market activities under Shariah-compliant and business sector. Despite its similarities, there is still low penetration of Islamic financial institutions on the Halal business instrument. However, the business should not only concentrate on Halal business but also financing SMEs is essential. The purpose of the study is to investigate the impact of Islamic Financial Institutions on the development of Halal SMEs in Nigeria. A 350 survey questionnaire was distributed to the twenty (20) Halal Small Medium Enterprises using Structural Equation Modelling and random sampling as an essential investigation tool. The findings justified that the development of SMEs with a significant number of business units and financing from Islamic financial institutions indicates a positive direction and promotes the development of SMEs ' relatively and broader representation of the Halal industry. The study shows a general overview of the positive impact on Islamic financial institutions towards the financing Halal sector and addresses the rate of unemployment in Nigeria. The study recommends strategies for creating a partnership with Middle-East and Asian investors for more effective models and application techniques for financing SMEs and addresses the rate of poverty and unemployment in the country.

Pengaruh Covid-19 terhadap Indeks Harga Saham Gabungan (IHSG) dan Nilai Tukar Rupiah

Al-Kharaj : Jurnal Ekonomi, Keuangan & Bisnis Syariah ◽

10.47467/alkharaj.v3i2.356 ◽

2021 ◽

Vol 3 (2) ◽

pp. 313-323

Author(s):

Nisa Alfira ◽

Muhammad Iqbal Fasa ◽

Suharto Suharto

Keyword(s):

Exchange Rate ◽

Financial Institutions ◽

Capital Market ◽

Stock Price ◽

World Economy ◽

Price Index ◽

The World ◽

Stock Price Index ◽

The purpose of this study was to determine the effect of the Covid-19 pandemic on the Composite Stock Price Index (IHSG) and the rupiah exchange rate in Indonesia. The research method used is descriptive qualitative by describing the existing phenomena. The results show that the impact of the Covid-19 pandemic does not only affect public health, but also affects the Indonesian economy, especially in Islamic financial institutions in the Islamic capital market, namely the Composite Stock Price Index and the weakening of the rupiah exchange rate. The pandemic has also been proven to have put pressure on the world economy, including Indonesia.

Shariah board, web-based information and branding of Islamic financial institutions

Journal of Islamic Marketing ◽

10.1108/jima-01-2020-0027 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Ishfaq Ahmed ◽

Ahmad Usman ◽

Waqas Farooq ◽

Muhammad Usman

Keyword(s):

Financial Institutions ◽

Internet Banking ◽

Qualitative Inquiry ◽

Board Members ◽

Islamic Banks ◽

Structured Interviews ◽

Web Based ◽

Content Type ◽

Purpose With the advent of technology and internet banking, the role and value of bank’s websites have increased. Additionally, the Islamic banking boom has also increased the role of Shariah-based banking in the market. But neither web-based information nor Shariah board members have been investigated for their possible effects on the branding of Islamic banks. Against this backdrop, this study aims to explore web-based information and Shariah board as a source of branding of Islamic financial institutions (IFIs). Design/methodology/approach An interpretivism-based thematic inquiry is carried out through semi-structured interviews of 22 customers of Islamic banks. Findings The findings of the study highlighted the fact that customers’ perceived web-based information is in line with the Shariah objectives but showed low level of trust on that information. They assumed that the practices are not consistent with this information. Moreover, the Shariah board members were considered as brand ambassadors, and customers valued board members more than the Shariah board and Islamic bank itself. Findings further highlight the more knowledge customers have about the Shariah board members (experience, qualification, achievements, etc.) the greater is the impact on the branding of the IFIs. Originality/value This study offers a novel perspective by considering the value of web-based information and Shariah board on branding of Islamic banks. As there is no such study available in literature, up to the best of researchers' knowledge, the qualitative inquiry may suffice the study objectives and research questions.